2013 is going to be a year of improvement in the economy. As we are almost out of the recession, the market is buzzing. You might be looking forward to buying your dream car or house, this year. It is important to strengthen your credit scores before applying for credit in order to make the process easy for you. It is not something you can do over night. It is a long process and so you will have to watch your credit activities closely so that your credit score remains high or increases if it is now low. Read on to learn how you can improve your credit score this year.
1. Keep all your credit cards
If you have more than one credit card, it is always advisable to keep your card active. If you close it, you are shoving all the credit history in the bin. It is not the right thing to do if you are trying to maintain a good credit score. Your credit card holds up to seven years of credit history. It is not wise to simply close the account and chuck the card and lose all of that history which shows that you pay the dues promptly.
2. Try one line at a time
Another common mistake people make is applying for many lines of credit all at the same time. It could show that you are broke and you might not be able to pay your dues promptly. If you are looking forward to getting a big credit, then stop making applications for small credits. And, if you need to apply more than one line of credit, do it in intervals of two to three months so that your credit score remains at good.
3. Pay Dues Regularly
It is the most important thing to do to maintain a good credit score. Try to pay the dues a few days before the due date. If cash is not available to you to save for the due, try not to get further credits before paying the dues so that you might not end up with an unpaid credit installment. Regular payment of credit is more important than anything when it comes to the calculation of your credit score.
Regularly monitor your credit score. There are plenty of agencies that will do it for you. Seek their help and keep track of your credit score at regular intervals. If you just finished paying all the installments, then check your credit score before thinking of getting a new credit.
5. Do not cross limits
Often, creditors are willing to lend you credit but won’t want to see you using up the whole amount. In other words, spend less than what you have been allowed to. The normal safe limit is 70%, i.e., spend only 70% of the credit you are allowed and save the 30% so that your creditors feel that you won’t overspend.
These are some of the ways in which you can improve your credit score. It is always easy to maintain a good credit score if you take efforts. Once you have a strong credit score, you can just go about buying your dream car or whatever you have planned for.